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CIPS Commercial Contracting Sample Questions (Q39-Q44):
নতুন প্রশ্ন ১TP11T ৩৯
Standard terms and conditions should become the governing terms for which group of items?
- A. Leverage items
- B. Bottleneck items
- C. Routine items
- D. Strategic items
উত্তর: গ
ব্যাখ্যা:
Standard terms and conditions are set of terms that is prepared by an organisation. These terms can become the governing terms in low-value, low-risk transactions (or Routine items according to Kraljic's portfolio model). They can be a reference when negotiating for more important contract.
তথ্যসূত্র:
LO 3, AC 3.1
নতুন প্রশ্ন ১TP১১T ৪০
Which of the following contracts would be best suited to a 'variable pricing' arrangement?
- A. A contract for window cleaning during the next three months
- B. A contract for the supply of 100 printing machines to be delivered next month
- C. A contract for road building estimated to take five years to complete
- D. A contract for the supply of lubricating oil for immediate delivery
উত্তর: গ
ব্যাখ্যা:
Variable pricing is suitable to situations when the cost of certain elements of the product fluctuate unpredictably. For road building, asphalt fluctuates regularly. Furthermore, 5 years are long period, then variable pricing is the most appropriate method to achieve value for money and control budget.
A contract for window cleaning during the next three months is a short-term service contract, fixed price is the most suitable method.
A contract for the supply of lubricating oil for immediate delivery is an one-off contract, only fixed price is applicable.
A contract for the supply of 100 printing machines to be delivered next month is also an one-off contract.
তথ্যসূত্র:
LO 3, AC 3.3
নতুন প্রশ্ন ১TP১১T ৪১
Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply:
- A. To induce the conflicts between the main contractor and subcontractors
- B. To condemn whole liabilities to subcontractors
- C. To keep main contractor liable
- D. To reduce the main contract complexity
- E. To improve supply chain transparency
উত্তর: সি, ই
ব্যাখ্যা:
There are number of reasons why the purchaser will want to control the supplier's subcontracting:
- Supply chain transparency: Normally the purchaser has invested a lot of effort into selecting the right contractor. However, the main contractor's selection of subcontractor might not be in such careful manner, which may result in poor performance. Purchaser must know who subcontractors are. Controlling the subcontracting process can help the purchaser control the outcome.
- Contract terms: the purchaser's requirements must be reflected in the subcontracts. The subcontracting clauses may require the main contractor to do this.
- Liability: the main contractor may subcontract the whole or a part of its liabilities. Subcontracting clause may bind the contractor to be liable with the work, it cannot just blame the subcontractor for any faults.
তথ্যসূত্র:
এলও ৩, এসি ৩.২
নতুন প্রশ্ন ১TP১১T ৪২
Blakenall District Hospital (BDH) is a large hospital that is a major part of the government's health service. Purchasing staff are in the habit of placing many long-term contracts with suppliers and sub-contractors. Whilst these contracts are usually carried out successfully, prices are often paid that are well over budget. The purchasing manager is concerned to find that, in some cases, members of staff are forcing suppliers to accept fixed price contracts. The policy has caused several problems such as some suppliers refusing to deal with BDH and a few going out of business mid-way through performing a contract with BDH. This is due to fluctuating market prices of materials. The procurement manager suggests supplier to adopt variable pricing arrangement with price index. Is this a right course of action?
- A. Yes, this pricing arrangement would reimburse the fluctuation of material prices
- B. Yes, this type of arrangement would provide absolute certainty when budgeting
- C. No, variable pricing would only benefit the suppliers
- D. No, price adjustment should be applied to short-term supply contract only (3-month duration or less)
উত্তর: ক
ব্যাখ্যা:
Procurement staff in the Hospital is forcing suppliers into fixed price contract. If the costs generally rise, supplier may operate at a loss. This situation can disrupt the relationship, that is the reason why some suppliers refusing to deal with BDH and a few going out of business mid-way.
Alternative methods could be variable pricing arrangement. This method would reimburse the fluctuation of market price. It will also benefit buyer if the market price drops. This type of arrangement should be applied to long-term contracts (i.e. 18 months or more).
তথ্যসূত্র:
LO 3, AC 3.3
নতুন প্রশ্ন ১TP১১T ৪৩
Which of the following is an invitation to treat?
- A. Tender bid
- B. Purchase order
- C. Invoice
- D. Price list
উত্তর: ডি
ব্যাখ্যা:
An invitation to treat is an action inviting other parties to make an offer to form a contract. These actions may sometimes appear to be offers themselves, and the difference can sometimes be difficult to determine. The distinction is important because accepting an offer creates a binding contract while "accepting" an invitation to treat is actually making an offer.
One simple test to distinguish an offer and an invitation to treat is to ask what this statement will become when it is accepted. Now we apply this test to four options:
- Tender bid: Tender bid is submitted by a supplier to an invitation to tender from the buyer. It states the specific quantity, price and other elements. If buyer accepts the bid, there will be a contract between them. Therefore, a tender bid is an offer.
- Purchase order: Purchase order which is sent by a buyer will state the items, the quantity, the price and terms and conditions. If supplier accepts the purchase order, there will also be a contract between two parties. It is also an offer.
- Price list: Price list is prepared by a supplier. The price list often states the items and unit price. If a buyer accepts it, the contract has not yet been formed since the contract scope has not yet been decided. It is an invitation to treat.
- Invoice: Invoice is often sent after a contract is formed. It is in fact a request for payment, neither offer nor invitation to treat.
তথ্যসূত্র:
- CIPS study guide page 29-32
- What Is an Invitation to Treat?
LO 1, AC 1.1
নতুন প্রশ্ন # 44
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